Can This Red-Hot Crypto Outperform Bitcoin Again in 2024?
One of the standout performers in the crypto market this year has been Solana (CRYPTO: SOL), which is up almost 1,000% in 2023. On the strength of its recent performance, Solana has become the fifth-most valuable cryptocurrency in the world, and some analysts are even predicting that it could soon surpass Ethereum (CRYPTO: ETH) in terms of market cap.
What's all the more remarkable is how Solana's performance this year compares to that of Bitcoin (CRYPTO: BTC), which has historically served as the benchmark for the overall crypto market. While Solana is up almost 1,000% for the year, Bitcoin is up "just" 160%. That's despite all the hoopla surrounding the possible new spot Bitcoin exchange-traded fund and the Bitcoin halving next year, which will slow the crypto's supply growth. So the obvious question becomes: Can Solana outperform Bitcoin again in 2024?
To answer that question, it's important to understand the key factors behind Solana's meteoric rise in 2023. In the early part of the year, investors embraced the narrative that Solana had finally distanced itself from the meltdown of the cryptocurrency exchange FTX (CRYPTO: FTT). The former chief executive officer of FTX, Sam Bankman-Fried, had been a major backer of Solana, and the risk of FTX contagion was seen as a real threat at the end of 2022.
Source Fool.com
